It is no secret that freelancing is becoming a popular trade among millennials.

According to recent data, more than 56 million Americans are freelancers. The freelancing market is aggressively growing. Not only in America, but Freelancing has gained a massive momentum all over the world in recent times.

Although freelancing appears to be a very convenient path outwardly, the truth is that it involves a lot of risk and worries. Freelancers often find themselves in unique financial situations. Sometimes the money is overflowing and the other times your pocket might be dry for weeks. In order to successfully overcome such an unstable venture, one needs to very smart and vigilant in their approach towards their money.

If you are someone just getting started with freelancing and are already inclined towards investment, then here are five essential tips you must know in order to keep your money flow smoothly with your venture-

Ramify your personal and business money

You need to be very careful with your money. Financial advisors suggest that you should separate your business expense from your personal expense. Keeping your personal expenses separate makes sure that your business money doesn’t get affected in crisis.

This practice allows you to have control over the money flow and also blooms your savings from time to time. Having dedicated business money will help you get your earnings in order and also an edge over any future investments.

Double up your emergency funds

You might have heard that one hard and fast rule to excel in freelancing suggests having an emergency bank account. While it is absolutely necessary to keep an emergency fund facility, another way into smart investing is by doubling the emergency fund every once in a while.

You might have had a fixed percent of your income dedicated to your emergency account. After every paycheck you receive, you transfer some amount of it in the same. While you think that such a practice is enough to encounter risk management, you might like to add up something more to it. Doubling your emergency funds by adding a little more to it after every quarter or 6 months will take you a long way!

It won’t cost you much at that moment but will surely yield a lot more in the long run. Such a practice is definitely a very smart move towards investment for those who are self-employed.

Invest in yourself for a long-term goal

One of the best investments you can make as a freelancer is by investing in yourself.

Spending a part of your money in learning a new skill is an indirect way of investment. As a freelancer, you need to focus on increasing your freelance rates. Building a high market value equals to more inflow of work which ultimately hikes your pay.

Thus, it is wise to say that building a strong market value by upgrading your skillset is a very underrated hack for freelancers. Such a move will not only open more opportunities for you but also keep you dedicated towards your long-term investment goals.

Keep a check on risk and stability

Risk and stability are the two most common terms you are likely to hear when stepping into the freelance market.

Freelancing is in itself a calculated risk but undoubtedly, it’s worth taking up. Maintaining a balance between risks opportunities is a must to maintain stability in your finances. If you are someone who is freelancing with the aim of extracting a long-term investment out of it, then balance is the key for you to attain the same.

Be vigilant with the potential projects and keep an organized approach so that you don’t mess up with the deadlines. You need to do some advance research about your potential investments and should have an ultimate plan of action to go with. Just with a little more knowledge and a sharp foresight, you are good to go with a freelance investment.

Invest in other small business

Lastly, I would like to say that the best way to gain capital is by investment itself.

As a freelancer, a very uncommon practice of investing in other small business might take you a long way ahead. It is not a bad idea to invest your hard-earned money into something in which you see the potential to grow.

On days when you are flowing with money, the best way is to act as an angel investor and provide little funding. Such a practice not only encourages growth in small business but also earns you recognition and subsequently might yield a big capital in later times.

Therefore, it can be rightly said that investing in other small business with a potential for growth is a win-win case.

Conclusion

Irrespective of your financial situation and your job profile, investment is always a good idea. The sooner you catch hold of such a practice, the better it will turn out to be.

As a freelancer, you have the choice of making money as per your requirements, and making a little more than required won’t hurt. So, gear up and make the most out of your hard earned money and don’t be hesitant to try out your name amongst the big shot investors.

AUTHOR BIO

Abhyank Srinet holds a Masters in Management degree from ESCP Europe & has an engineering degree with a specialization in Instrumentation & Control. His interest in the digital landscape motivated him to create an online start-up for Masters in Management application consulting (MiM-Essay.com), focused on spreading quality information about the MiM degree & performing application consulting services for clients. He is the chief consultant of the company and takes care of Business Development and Digital Marketing side of the company. He is very passionate about writing and marketing.

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A tough economic environment means it is difficult for the masses looking to do nothing more than be an employee. To prosper in this environment you have to be creative, innovative and willing to compete and work harder than your neighbor. I believe we're increasingly moving towards a time where more people work multiple jobs and make a living in a number of different ways - increasingly moving away from the era where a man works for a single company for an entire career. I believe in working hard to generate multiple streams of income and often discuss ways to make money online to achieve financial freedom.